Industry News

On May 28, 2019, the Internal Revenue Service (IRS) issued Revenue Procedure 2019-25, which provides the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under Internal Revenue Code (IRC) § 223. For calendar year 2020, the annual limitation on deductions for an individual with self-only coverage under a High-Deductible Health Plan (HDHP) is $3,550. For calendar year 2020, the annual limitation on deductions for an individual with family coverage under a HDHP is $7,100.

For calendar year 2020, the IRS defines a HDHP under IRC § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.

Revenue Procedure 2019-25 is effective for calendar year 2020. It is included in Internal Revenue Bulletin 2019-22, which is available here.